If you are over 55, you can access up to 25% of your pension funds tax free and what’s more, you can do with it whatever you wish.

One of the big benefits of pensions has always been the tax free cash lump sum you can take when you retire. In general you can take up to a quarter (25%) of your pension pot tax free and until recently, you would have expected to start taking an income with the rest of your money at the same time.

The government has now changed the rules, you can still have the tax free cash lump sum but you no longer need to start taking an income with the remainder, you can just leave it to use at a later date. You still need to be at least 55 years of age but you don’t need to have retired from work.

What do we do

One of our qualified advisers will work through a series of questions with you to better understand your needs and objectives and after reviewing all the options will make a personalised recommendation.

What could you do with the tax free lump sum?

For many people, a tax free cash lump sum offers a great opportunity to help put their financial affairs in order.

Most common uses are typically:

Help pay off a mortgage or other debts, such as credit cards and loans

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Views expressed by our author, are the personal views of the author alone, and are not intended in anyway to be construed as advice. They should only be used as guidance and are not necessarily suited to the personal circumstances of every individual in the UK. If you are interested in seeking advice further then please contact Credencis direct.